Savannah morning news. [volume] (Savannah) 1868-1887, 1887-01-19
ROADS TO THE PACIFIC.
THEPLAN FDR INV NVESTIGATING
THEIR ACCOUNTS.

Crisp'N Request.
WASHINGTON, Jan. 1S.-The joint reso-
luton providing tor an investigation of
the accounts of the Pacific railroads
passed by the House to-day provides that
the Secretary Of the Interior be au horized
to appoint and fix the compensation OF
three competent persons, said compensa-
tion not to exceed the rate OF $4,000 per
annum to each, and necessary travelling
expenses and board bills, for which proper
vouchers shall be returned to be approved
by the Secretary Of the Interior. and also
to appoint a stenographer if necessary
and fix his compensation, whose duty it
shall be TO examine into the working and
financial manag ament of the Pacific rail-
roads Cor such thereof las may be
deemed eXpedient) that have received aid
from the government in bonds or land; 20
ascertain whether they have observed all
the obligations imposed upon them by the
laws under which they received such aid
or since passed in reference thereto;
and whether their books and ac-
counts are so kept as to show the net
earnings of aided roads not reduce by
constructive mileage on branch roads or
average mileage between aided and non
aided roads or parts OF roads, or whether
lhere is diversion of earnings of aided
roads to less productive branches, or any
other wrongful or improper purpose, and
il so, how much; and whether there Is
discrimination OF rates in favor of uua,ded
against aided roads, and whether any,
and if 50, how much money is due and
owing to the United States on account OF
mistaken or erroneous accounts. reports
or settlements made by sad roads: OF
whether the proceeds OF any trust funds
| lE.. Il lOaY rlr.a fyn.a
have been diverted from their lawful use.
The persons appOin ed are TO have
power to examine all books, papers, and
methods OF SAID companies, employ eX-
perts If necessary, summon and compel
tue attendance OF witnesses, and to ad-
N mister oatns. They snail at all times be
under the immediate direction and con.
troll of the Secretary OF the Interior and
may al any Time be removed by him Ia
his discretion.
THOSE IMPOSED BY AMENDMENTS.
In addition To these duties are those I'M
posed by amendments, adopted as FOLLOW >:
One offered by MI. Crisp directing au
| inquiry into the kind, character and
amount OF the ass It's OF such OF the COM
! panies as have received aid from tue gov
| ernmen in bonds, aud what assets of each
| company are now biect to the lien OF
| the government and The value thereof.
| MIR. Anderson, of Kansas, dlrec' an
| inquiry as to whether any dividends nave
| been unlawfuliy paid on the capilal st ok
| OF SAID companies and whether any new
stock mas Deeu issued, or any euarante es
! or pledges made without the auLnOrl oi
! the law. Tue Commission is also directed
! to investigate all facts relating 10 the
pretended consolidation OF the Uniou
| Pacific Railroad Company, Kansas Pa.
cltc Railroad Company and Denver
/ 4
corporation known as the Union Pacific
Railway Company.
USE MADE OF MONEYS.
BY MIR. Holman, OF Indiaua-Directing
| the Commission TO inquire whether any
OF The Pacific railroad corporations which
have ODtaIned bonds from the United
states have expended any Ol their moneys
or other assets In the construction OF
other railroads, or invested any OF tneir
moneys or other assets i'll stocks or bonds
OF other railroad corporations; and il any
such expend lures or investments have
been made, the extent and character
thereof made by eacn Of said corporations
shall be inquired into, and also tue pres
ent interest OF SUCH corporations in raIl-
roads auxiliary Of their respective rail-
roads.
By Mr.. Henley, of CalIfornia-Extend-
ing the inquiry rs to whether any dlvi
deuds have Ueen illegally declared by the
directors of SAID companies, aud il 80, To
what extent, and whether tue amount OF
such Illegal dividends may not be recoy-
cred from the directors unlawiully de-
claring tue same.
INDEBTEDNESS OF THE ROADS.
Secretary Manning, in reply to the Sen.
ate resolution OF Jan. 6 calling upon him
for InlOl nation as 10 the sums OF none,
owing to the United States by the Pscitic
railroad companies, says that he amount
due from the several Pacific railroad
companies for interest paid by he Union
Pacific to Jan. |, 1887, On subsidy bonds
issued to sa companies was, $40. .S54 .325,
of which there had been repaid by The
companies at thaL date $2l 552. 144, leav-
in, due on account OF in crest $40, ,3O2, 1871.
There Will be due on the same account at
the maturity of subsidy bond- sept. ii,
1897, tue lurther sum OF S43, 4O6 92I, max
iug total of 92,1J9, 1913 due aud 10 be.
come due on account vi interest. There
is also TO become due on account OF the
principal OF these bonds at maturity
So 1868, 3,6l3. maAing an aggre kate Indeb5.
edn, ss due ana 10 become due OF Sl57,-
1860.
HoAR's BILL.
In regard TO the inquiry as TO what diff
fer0nce will r. slht 70 the Treasvry n Gep
debt funding blll) should become law,
IL may he stated JiIas tue spoSi~l nfutLOd
prescribed by the bill for obtaining con-
slant annual payment Is one which,
while proposing TO hnd cons ant semi
annual payment adequate TO eXtnkuisn
both tue principal and interest Of the in.
debtedness of tne companies, is Insult
fcient TO cancel even tue Interest, being
sufficient TO provide for tie payment OF
only eieven-tweltths OF the interest. rhe
present worth OF the Indebtedness of tine
companies oh Oct. /, 1886, ascerta ned as
prescribed In tue bill, Is SllO,97S, IOO, the
| semi.annual interest on which, com puted
at per cent. rer annum, ~ 81 664,67l,
| while the constant semi-annual pay ment
. .-.,---=5. 20 - ---ti- tf..-l a. Esy s.uIl
OF tue hill Is Sl,595,94S. Tue constant
semLannual payment on the bonded in
debtedness required to cancel the in-
dsbtedness above mentioned, $ll097S, 100
principal ana Interest, In eighty years.
computed at the rate Of 3 per cent. per
annum. relnYested semi.annually, 10
81, oS4, ,O63.
CAREFUL ANALYSIS.
A careful analysis OF the subject has
been made by r. B. Elliott, Government
Actuary, TO whose report herewith trans
mltted, tine attention of The Senate Is in.
vited for further particu ars. Tabulated
statements, showing amounts due and to
become due from each OF SAID companies
respeotiVely. together with the details OF